The “One Big Beautiful Bill” (H.R. 1, the One Big Beautiful Bill Act), a 1,116-page legislative package advanced by House Republicans in May 2025, represents President Donald Trump’s flagship agenda for his second non-consecutive term. Combining tax cuts, spending reductions, border security, and policy reforms under the budget reconciliation process, the bill aims to deliver on Trump’s campaign promises while navigating a slim GOP House majority (220-213) and a 53-47 Senate edge. This bill is a bold attempt to reshape federal policy, but it faces hurdles from GOP moderates, conservatives, and Democrats. Below are the eight most important takeaways from the bill’s current version, based on verified data from sources like the Tax Foundation, PBS, AP News, and the House Ways and Means Committee, as of May 21, 2025.
1. Permanent Extension of 2017 Tax Cuts and Jobs Act (TCJA) Provisions
The bill permanently extends key TCJA provisions, including individual tax rates (top rate at 37%), the doubled standard deduction, and the alternative minimum tax threshold, preventing tax increases for 62% of filers if the TCJA expired in 2025, per the Tax Foundation. This stabilizes the tax code for households and businesses, aligning with center-right priorities of tax relief and simplicity, but adds $7.7 trillion to the deficit before offsets, per the Joint Committee on Taxation.
2. Temporary Tax Cuts for Individuals (2025–2028)
The bill introduces temporary tax cuts expiring after Trump’s term, including a $2,000 increase in the standard deduction ($32,000 for joint filers), a $500 boost to the child tax credit ($2,500), and a $1,000 credit for newborns (2026–2029). It also eliminates taxes on tips, overtime pay (excluding high earners), and auto loan interest, fulfilling Trump campaign pledges. These temporary measures, aimed at middle-class relief, add complexity and face criticism for their $3.8 trillion cost, per PBS.
3. No Tax on Social Security Benefits Replaced by Senior Deduction
Despite Trump’s promise to eliminate taxes on Social Security benefits, the bill instead offers a temporary $4,000 deduction for seniors (2025–2028), per PBS. This targets relief for retirees but falls short of the campaign pledge, potentially disappointing GOP voters in states like Florida and Iowa, where seniors are a key voting bloc.
4. Significant Deficit Increase Despite Offsets
The bill’s tax cuts cost $4.9 trillion over 10 years, partially offset by $3.9 trillion in tax-specific offsets and $1.6 trillion in mandatory spending cuts, resulting in a $3.2–$4.1 trillion deficit increase before interest, per the Committee for a Responsible Federal Budget and Tax Foundation. Critics, including Rep. Chip Roy (R-TX), argue it fails to reduce the $36 trillion national debt, with conservatives demanding $2 trillion in verifiable savings.
5. Medicaid and SNAP Cuts Spark Controversy
The bill proposes significant cuts to Medicaid and SNAP (food stamps), reducing Medicaid enrollment by 10 million (including 1.4 million non-citizens) through work requirements starting in 2029 and other restrictions, saving $700 billion. SNAP reforms shift 5% of benefit costs and 75% of administrative costs to states and expand work requirements to age 64, impacting 42 million recipients. Moderates like Rep. Don Bacon (R-NE) and Sen. Josh Hawley (R-MO) oppose deep Medicaid cuts, citing harm to low-income voters, while Democrats call it “extreme and toxic.”
6. Border Security Investments
The bill allocates $46 billion for border security, including completing the border wall, hiring 4,100 Border Patrol agents, 10,000 ICE officers, and deploying AI fentanyl scanners, per the White House and X posts. It funds “mass deportation operations” targeting 1 million annual removals, a cornerstone of Trump’s agenda. This appeals to the GOP base but risks alienating moderates and Hispanic voters in states like Georgia.
7. Repeal of Green Energy Tax Credits
The bill phases out or repeals Biden-era Inflation Reduction Act (IRA) green energy credits, including those for electric vehicles and residential energy products, saving $500 billion over a decade, per the Tax Foundation. This aligns with GOP priorities to curb “Green New Deal” spending but faces opposition from clean energy advocates and could impact jobs in states like Michigan.
8. SALT Deduction Increase Faces GOP Pushback
The bill raises the state and local tax (SALT) deduction cap from $10,000 to $30,000 for joint filers earning under $400,000, a concession to moderates in high-tax states like New York and California. However, Reps. Nick LaLota (R-NY) and others demand a $62,000 cap, which could add $1 trillion to the deficit, threatening the bill’s passage. This internal GOP divide, noted by AP News, risks stalling the bill before the House vote.
Broader Context and Challenges
The One Big Beautiful Bill, advanced by the House Ways and Means Committee on May 13 and the Budget Committee on May 18, uses budget reconciliation to bypass the Senate filibuster, requiring only a simple majority, per NPR. However, GOP divisions—between fiscal hawks like Roy demanding deeper cuts and moderates like LaLota seeking larger SALT deductions—threaten its passage, with a House vote targeted before Memorial Day. Democrats, led by Rep. Hakeem Jeffries, vow to oppose it, citing harm to low-income families. The bill’s $1.6 trillion in savings, the largest since 1997, is a center-right win, but its $4 trillion deficit increase and temporary provisions draw criticism for lacking fiscal discipline.
Final words
In current form, the One Big Beautiful Bill delivers on Trump’s promises—tax cuts, border security, and deregulation—but its $4 trillion deficit hike and divisive cuts to Medicaid and SNAP risk GOP unity and public support. The permanent TCJA extension and temporary relief (tips, overtime, seniors) are wins for workers, but the SALT cap dispute and conservative demands for deeper savings could derail it. Green energy repeals and border investments energize the base but alienate moderates. As the House vote looms, the bill’s fate hinges on Speaker Mike Johnson’s ability to bridge GOP factions, with significant implications for the 2026 midterms.
Help American Liberty PAC in our mission to elect conservatives and save our nation. Support – American Liberty PAC